Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Sprinklr's First Quarter Fiscal 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. Please limit your questions to one with one follow up, so we will have time to go through all the questions. Please be advised that today's conference is being recorded.

to Mr. conference like first to now today, speaker would hand over the your I Vice of Scro, Eric President remarks. Finance, for introductory Please Eric. ahead, go

Eric Scro

fiscal Thank Sprinklr's call. welcome, and year quarter you, results XXXX everyone, financial Doug, first to

of made us Investor Form Manish Chief website, release presentation. X-K SEC, and our a with Joining and time Relations ago, our we've We Sarin, are the Sprinklr's Financial Ragy the Founder them today with filed the CEO; supplementary issued short Officer. section available earnings on Thomas, the along and related investor

to on non-GAAP Please call, note that today's measures. management will refer certain financial

While substitute presentation measures of financial the in presented for the isolation GAAP. to provide the is information for in not financial intended information investors, these company with this believes accordance be a useful as non-GAAP considered information or

You press are investor a reconciliation and GAAP. such presentation for supplementary directed measures to our of release to

it Ragy me With to Thomas. over let please that, turn

Ragy Thomas

us everyone. Thank you, hello, and Eric, for Thank today. joining you

to Before are our to a we like I quarterly share. jump things few there results,

and Sprinklr’s on XX, strategy. seeing Investor Stock more we ever hosting first New our the in at about business Day We is July you person of look details forward Exchange. First many vision will to and be that sharing York

as back it him. anyone The deserves John the a know, if remaining executives thank resigning an caring little working XXth Board XXXX. X-K time and I as publicly in John advisor. from take second, is contributions member most in you one want moment June would of since Board our we his Chambers life, to joining but and saw We be his a May about our of John the filed on XX, Board a for as to hardest

friend on will no a and an coach, advisor as to stay grateful commitments, John he'll mentor, be are all and longer to of a continue While that us. we board have

Committee. become will finance, at business a Board member to a are Board. be appointment Directors. and its Synopsys Trac will addition as Trac XX, recently welcome great into also expertise. Sprinklr a is I across experience of Trac the broad His given effective multibillion served excited for him great to our team and vast with on remit IT. Pham most business to and tapping we a The Audit forward scaling our a June broad to and Next, with of development strategy, culture dollar are management and Trac CFO fit his working our looking

first So, let's our quarter. jump of into results the

key another guidance very quarter very, we subscription that was that XX% million revenue income million and grew focus XXX.X efficiency, operating exceeded report are pleased also for operational the across on that delighted total continued strong grew to QX I'm million. XXX.X XX year-over-year in With revenue our to We all non-GAAP metrics. generated XX% year-over-year QX to quarter.

driven all key few are mind are a things that results by These of of us. top for

We category customer we we a experience First, are new of management. it for software believe unified office. the front enterprise call creating

a there's some might it a simple hear technology best to siloed need as clear brands front appear. customer to seamless eliminate and world, we as data, in constantly from platform the the office create As experiences of for team's

customers and front is channels, and AI a risk, operate experiences across have functions, costs, to office that by today. productivity core experiences benefits be And unifying just conversation. increase mitigate and reduce brands. data unified cannot fueled at brands seamless by and of growth. multitude This markets by that Customer companies in architecture approach of all current unstructured different spans silos mostly large the and create the for differentiated and supported that relational These impossible of powered improve CXM database units, are and CRM most and it's its both CDP available business publicly package. can these the and Unified

in recently our our us customers and our analysts well-respected vision. and XX very validate approximately our joined to Analyst customers. see industrial Summit Dubai encouraging where first speak to We them hosted It was

made available appears for IR on already one its architectural from their references ambitious you came of on to worth set ‘built an analyst our plan.’ quotes be up framework, have in We and growth address presentation IDC said, some who mentioning quote But the well robust website. Sprinklr an to

see are very, point second finally is The us is, to AI mainstream. become very for we that excited

a has tracking all into of you read beginning And beginning. from from As our us. IPO very unified our know always foundational woven it key our the has prospectus, and to it platform very, a of been very clear should fabric and platform. at if for been was been AI us who've It's be you that that you are IPO, differentiator every

that can AI. any five to in our company other training next and the the in matched that external training, data best achieve in space And be been training unstructured is Sprinklr of for AI+ system million Sprinklr XXX over industries is across the with brands XXX evolution we're recent sub over of models AI short-term. of regarding data over world. X,XXX and conversational I by record accuracy for And with industries we've announcement languages for the years. in the points over some able the XX our A don't believe

becomes capabilities suite. an generative powerful. We XX product AI+ over generative AI open last features in AI features our through delivered With Sprinklr AI release. across integration AI even our more our AI, includes all

another have We planned for our next. XX

specific more which help Some of with content relevant smarter features include agent these recommendations, and responses, productivity. generated and increase auto responses summarizations, customers

the believe feature the company AI whether is a is you acceptance you sooner will will is everything later. do. I of separate core by or from embrace customers it one agents agent's winners What AI responses that AI provide Sprinklr or for we enabled losers at of streaming for Every smart are of suggested improved after our the responses, XXX% we example, which For plus.

how the market we're despite pleased to control with So, we what's our in go very execution. productivity, our and macro managing environment, strategy, with are

for which market Specifically, key been quicker a team the overlay service has in progress – top to expertise about This continue we to hires several faster the to excited to CCaaS easier deployments. our quarter, offering go make making in in-depth verticalize the to made enable priority sell, add past we're company. we it and time to we're it to to value

deals also key including partner partnered which on field. We of are with with now ecosystem the down airlines. are companies industries, in some our Intelisys in CCaaS we Foundever, want together to beginning and doubling couple we've up and like services amazing a running to and financial We're and more that recently result

we partners we As the know, remain critical, in to onboarding as the are training and you especially context rapidly all as space them committed can. and and

quarter, opening and is last easy as self-serve the discussed finally, been is to anticipate with deals. offerings, a And Social to in Feedback product Sprinklr product social has it event. sales geographies we with in very incredibly our in team use suites. we advance actually now quarter, to the our of larger This how terms for expand company, conversation past positive and large media started multiple and door

CCaaS brief continued momentum space. update I'd our on a the Service and love in disruptor as provide Sprinklr to a

Sprinklr needs center they in built platform by single the point cost to Our very stack be to with a a code for find voice buyers as on vision sales. center from unifying AI with their more is focused efficient the a IT to a fit consolidate and that's help great to a it center transform solutions contact a revenue powered effective and architecture. base marketing contact customers center omnichannel extendable

of three During saw across primary the meaningful first quarter, deals all we our close theaters. CCaaS

quarter, and and world-class like Wilton. existing [ph], the continue expand During Avis, we Airlines add new Lululemon, brands to Garmin, first Spirit [Tuma] customers customers, with including

X and which ARR expanded product all our XX win their Sprinklr examples to top renewed platform Sprinklr. you products business suite in Starting give few are million over service of me in unified with with customers showcasing an using the the QX across are languages. a with using of $XX the is CXM in Global power They company, how XX over Let and of currently now Sprinklr. expansion Technology

service critical opposed comprehension, Sprinklr, agent assist enabling actionability, them previous and video pairing, detect now smart of and X XX this the bases and AI co-browsing, agents, within support through at to is guided it take chat, workflows, AI, can client as minutes increased improve minutes the to expand coverage client, automation. knowledge Through SLAs part to Sprinklr issues capabilities to like their XX used minutes deployment their powered enabling now responses. a for this customers, and

of customer service Another service resolution. voice an enhanced East to customer Middle and across and companies digital sources one actionable gathers all largest Sprinklr program. Americana partnering to Americana, restaurant program story is began build-out the in customer of voice with Africa. actionable the life, This originally of the and voice insights with provide

to platform it the Americana has minutes. of now helped and Our implementation response reduce time

quarter, implemented last countries expansion the Americana has multiple XX brands across X,XXX restaurants. With several in Sprinklr now across

– Another and with is is a deal a strategic multinational Sprinklr a customer enterprises. Hilti, as signed XX,XXX is amazing leading a our an logo, Unified-CXM and example use testament to company with social, example interestingly X-year This manufacturing how a inside, to new employees, who large new marketing over for using solutions.

social, teams laid digital, is Roche, global of in Another the Using to Sprinklr, the and companies with largest partnership broadcasting of expansion world. the and traditional example holistic for now media insights print a stations. have provide the pharma intelligence across strategic one they including foundation

siloed The diagnostic it to display in enables Roche and a growth diverse in to time in and respond situations key become driving the proactively pharma divisions as optimizing crisis decisions stakeholders plays is over and on and role consolidation strategies. obviously is, based XXX informed and across One countries analytics vision make data real it Roche's

to to this like in innovation team as and celebrate Their Before wrapping all always marketplace. up, possible. incredible moment engineering Sprinklr who dedication make differentiate of I'd a continue to speed the take our of

FY In with our pleased are very closing, start to XXXX. we

analysts, the by around influencers, we're momentum industry things. engagement customers seeing three encouraged and We’re from

First, to set front customer simple level Unified-CXM, of and of software. a architecture and new the point work. that solutions won't be at have unified and and it a data technology call We the teams office idea disconnected that but category journeys

third, approach AI our AI are strong drive focus, superpowers. efficient momentum integrations which our AI that them lastly, our on way think being facing its is suite. customers to is execution, plus our well Two, across and us And is mainstream helping on excited focus super first generative product and I customer give with

of our partners, for results our employees and continued our in long-term for for thanks innovating to vision executing becoming committed vision. shareholder delivering profitability. loved growth and the software our to enterprise in our customers, most with to Thanks and and for believing remain and our work world's our value the succeeding and customers, company hard We partners, investors

Let Manish. me call hand the over to

Manish Sarin

everyone. afternoon good and Ragy, you, Thank

with pleased XXXX. we’re Ragy, from our start heard to you As FY

first the high-end million, XX% XX% XXX.X of year-over-year revenue up For of also above grew and the This guidance quarter, above of driven by year-over-year high-end subscription was the our million, XXX.X total was range. range. guidance our revenue which

One the commensurate bookings, and of front came was drivers Services outperformance at the key million. benefit approximately to for revenue of subscription in revenue which XX.X was loaded the million. X timing was of subscription revenue QX quarter new in the QX

quarter Our first XXX%. the subscription revenue based net dollar expansion in rate was

in As our discussed we business, as not monitor statistic but the past, is a part is the growing something NDE have byproduct. of we

to rates quarters. customer moderate and logo macroeconomic new to we upsells acquisition expect moderate coming continues NDE renewal As the and in conditions increase,

quarters. range for over to the teens percentage current expectation is Our few settle NDE the next in mid-to-high

of As sequentially, the $X XX% subscription preceding end increase had revenue of increase months, XX million quarter, over is an contributing XXX the more year-over-year. seven the or which a in first we of customers

non-GAAP efficiencies our gross to leading the basis, gross a was of to XX.X% total operations, non-GAAP continue a drive margins margin margin our gross XX.X%. as Turning quarter. cloud for subscription we On to first in

shown and to last have an the expense of This sales of quarter quarters. XX% basis We over decrease S&M spend in point improvement is QX revenues, in Sales consistent to last in efficiencies and is compared in marketing first the XXX year-over-year. continue generate several marketing year. XX% and now

QX compared QX, start the the for had XXXX in restructuring attributed kick-off, activities spend on well we QX slated is of related costs S&M FY to as as earnings sales in discussed call. such as to the increase sequential the The largely to QX sales year of

XXX year-over-year. leverage basis decreased We which by from operating also realized points G&A,

profitability. third margin million, to Turning XX non-GAAP for share. was gross discipline quarter non-GAAP income equating of revenue was income over per operating operating the expense net $X.XX across performance, margins, X% the a to quarter profitability improved coupled result of department is of non-GAAP consecutive with the every quarter, operating and This for a

noting valuation approximately worth the and the not realized our in also that QX our X guidance. we is in tax Japan entities. these million in-line credits tax in million, allowances QX, of It X.X on to Had Brazil we would approximately been had release provision related prior with have credits,

Lastly, profitability. of topic on the

time For per as company, share. the for ever positive traded X.X posted quarter totaling a GAAP the income or we first $X.XX publicly net million

While GAAP a GAAP tax faster of we to us committed for one-time net were income full-year basis the remain than allowing profitability expected, achieve XXXX. credits achieving beneficiary profitability income on net to FY we

In [an] to $XXX.X outstanding. cash were same Calculated now million an million, million terms cash generation [ph] This increase stands for the free of period cash, at cash sheet, adjusted during of last equivalents XXX.X first we of year-over-year. debt flow with XX% an year. the and XX.X contributed quarter, million to free balance X% quarter no flow billings our compared in generated very which in margin X.X healthy first the

up As up XX% of XX% and obligations in year-over-year. CRPO total a end has committed to and contracts therefore in are to RPO, QX, attributed decrease last the recognized not CRPO RPO compared period CRPO. been which revenue RPO and for QX of was XXX.X or same the performance and included not multi-year million, from up XXX.X deals of handful that sequential remaining was be year can customer in large yet renewal million, both The that represents

outlook. FY now guidance Moving full-year non-GAAP QX and and to XXXX business

trends strong. demand you remains As long-term engagement heard Sprinklr for today, and

last continues to throughout and current uncertain XXXX. our environment to the continue quarters macro the that that be we However, broader is from assumption the few macroeconomic are trends recognize likely FY

revenue we million the XX% revenue XXX XXX expect in representing million, be million, growth growth representing QX the FY to midpoint. XXX of range at subscription For in to this, million expect XX% of Within XXXX, we total at to the be year-over-year the year-over-year range to XXX mid-point.

call, Concurrently, services half we As $XX services first approximately XX expect that we driven breakeven QX, QX. half we services CCaaS in the investments effectively managed call. had service to by services in on here in mentioned XXXX on approximately to the commentary our first of margins with overall dip revenue equating the for the consistent QX and in our services million of earnings delivery ongoing FY QX million in expect here revenue such earnings our are margins

to to net assuming average income of operating million non-GAAP XX shares of outstanding. non-GAAP share million, We income range expect to and be in per $X.XX per the XX $X.XX weighted share XXX million

For for our the full-year we raising both revenue FY XXXX, subscription and year. total the are outlook

is expect We increase which QX. million, at growth magnitude to the now XXX midpoint. XXX subscription This of QX be subscription of the the in revenue million representing and year-over-year the million, revenue XX% an X represents the for range raise beat full of guidance to

customers. to investing in As we easier alluded value accelerating we time earnings have therefore, for the to calls, been and products implement to making on prior our

partner on have In our in such to suites delivering that revenue proportion addition, services a product we the service of also ecosystem take partners delivery attached we been our expect cultivating our delivering around product. larger a

reducing we XXXX dynamics, these revenue from million. revenue of change, services be X% of for to FY guide FY this are XX revenues. XXXX total million XX approximately will In-light services With the

the at range revenue growth in the to million, total to XXX representing mid-point. expect year-over-year XX% We of XXX be million

assuming of for now implies to For net million and QX be non-GAAP XX the per raising This the at midpoint. to XX the X% the full-year $X.XX for the estimate our raise in to $X.XX, non-GAAP increase midpoint an average FY of a million XXXX, share at QX. income million operating we income are range beat shares of equating represents XX million to margin XXX full the accompanying Note, approximately weighted operating outstanding. non-GAAP the

estimate for added here the deriving provision the QX. provided. income a estimate million non-GAAP for operating total to XX a interest FY provision that million needs income per QX. tax million XXXX we full-year in share We of just here income $X Furthermore, net cash in with be In X in range for the modeling full-year X.X the million to of purposes, earned to be

tracking QX income XXXX comments FY for be on GAAP positive the are earnings the net We to our call. full-year with consistent

Billings slower growing high but in the are in subscription grow total teens, faster slightly QX revenue, to expected revenue. than than

QX QX beat through expect any and XXXX. the We to in upside FY flow billings the full-year for

QX, With partners. For modeling our have the to FY one in free in of purposes, in XXXX. FY cash I cloud respect same large flow, would assume public payment annual as billing XXXX a seasonality we to due

negative our negative As to $XX be such, basis. with million. full-year we and around free free on to be cash expect is flow positive coming solidly flow expected QX commentary, a cash prior Consistent

reminder, our look details and the quick broader management on with a financial to Ragy, share seeing upcoming there. are to and more Wednesday, Sprinklr Day forward team, eager about many and our profile I business of XX, July As you at you Investor

dedication our would for are at like and for passion to what building I thank all their Lastly, employees we Sprinklr.

During placed grateful operating execution successful our that also across in We us. customers track the on an macro uncertain for discipline I'm confidence business. the of remain building and a have record focused environment,

open up let's And questions. with for Operator? that, it

Operator

[Operator Please Raimo your of from Lenschow Barclays. the question you. line proceed Instructions] Our with Thank comes question. with first

Raimo Lenschow

may. Perfect. Thank you. I I had two, if

one on and quarter. – First great congrats a

thanks a you're guidance First lot. one updated Services is there, explains doing kind the now, kind the that and on of push for of that

like, there are And it the seeing then one terms you're Sprinklr and transformation a bigger of working think in had or they relationship there practice with I of the about building how what office are you? follow-up. thinking is the kind it with more front specific of If building as partners, nature a in bigger – digital of about Service you what's kind the they

Ragy Thomas

Yes.

this always. Raimo, Good is Ragy. to So, connect

So, I two there out. would are point things

customer Accenture, is, and developing more digital consulting specifically the What interesting a a ecosystem pretty in of broader First developing broader partnership transformation on integrators the with like more category is, and is systems on partners, They're the and center industry. our we're contact focused partnership ecosystem you've and space, the as there's been Deloitte partners, of partners. very second the outlined. we've that interesting service peripheral are there now implementation ecosystem,

hadn't of past rapidly done. that our that in which was aspect expanding we're we partnership So, something ecosystem, the

Raimo Lenschow

Yes.

debate looking was office other Okay. conversations, what Perfect. of nature thinking now have maybe, like a front customer the leave and that it I'll with XXXX, is of conversation then from and the terms period, that forward of big and can like bit in you about first again. we kind market And In overinvested moment we the you at the do happens a you that now here? ongoing have digestion slowly investments, the see start in do in congrats like little a again. me And your see change again that in

Ragy Thomas

they sticking. units. million markets. companies more now What is finding XX finding is across across XX seeing companies and to or channels, customer over X that customers finding that a you several change business for palpable million. XX large say, customers We're the platform is is are for What spoke over large. we're we from over What are million. is I across that us expanding and probably expanding are know, XX have the, expanding a say I'd best are biggest we're and we're are our increasingly let's actually And as

So, you suite. more vectors products capabilities cross-sell and product two more have products we of is across growth. and know One

less visibility. gets the part along has where you market. strategy expanding single new added, comes that business units one across expansion architecture that understood global a other unit is and new our because and suddenly collaboration of have or it The the market a That's business instance

Raimo Lenschow

you. Okay, perfect. Congrats again. Thank

Ragy Thomas

Thank you.

Operator

proceed line Please Our next Bora the from question of with with question. comes your Pinjalim J.P. Morgan.

Unidentified Analyst

our Hey, guys. questions. on [indiscernible] Thanks taking This is for for Pinjalim.

maybe Just should products launched uptake the of at around end the the really which with there? additional just top help self-service the more just provide the for of color Thanks. you the and Can first the new product self-service one, funnel you some dynamics. March,

Ragy Thomas

is like the report right, we the do said we dynamics what So, I'm wanted time, been it's we someone using very product fairly a roll-out of happy controlled it's product, are that which to – last – very, very been the get feedback and because strong. is to the

process that capabilities of digital We marketing the are people to increasing using to in to get and now try. of the reach more funnel the top traditional

build you be testing hopefully, And as more on feedback. us and well to out focus companies out really that who two say, are a big buy as more teams there, going smaller over target in very to before working that giving and and It's the our market, resources potentially next putting quarters, lead I'd and try channel. three generation we'll try on great

Unidentified Analyst

the relatively the Related it follow-up. Great. just been sounds has And then to like a quick environment consistent. macro, that

did that call the bit for out retention in forward. some moderation you little a unpack maybe going Could You just you. Thank us?

Ragy Thomas

Yes.

So, always that. said we've

I we've think, environment that consistently said now three for quarters, is the last steady. the

involved. deals, consultants what is people huge CCaaS the out more processes measured already, deals unlocking multiple is So, a careful you RFP stakeholders I'd formal outside get management partners, approving get very And CCaaS, spend, lots as point partner, more probably that of space. we're scrutiny, change. spend, it deal people seeing as the we into continues. change take longer. and We're not are There What and that into and know is, seeing in

by don't a We're lean in think proof of we strong seeing XX% thing, it's as and more, concepts, cases. cycles going we're reception. to running average XX%, agent you're a and So, agent able show we productivity productivity go time bit, but see little but many reduced increase case we're handling by up macro to sales very several

very So, it's promising.

get to through few the and deals got scale we cycle. get sales a Now,

Unidentified Analyst

and you quarter. Thank the congrats on

Ragy Thomas

you. Thank

Operator

of Porter Please line with comes Stanley. question question. with your from next Morgan proceed Elizabeth Our the

Elizabeth Porter

We ask interesting generative AI+. the specifically so wanted to lot it AI, is. see press on including broader a for Great. Sprinklr across topical just I you Thank generative landscape, much. AI, releases of how given

how become we of you AI do really real what solutions? features? And versus what sense should AI road the Sprinklr? Gen the view map table stakes And monetizable make most about generative new incremental for monetization for capabilities think how So, forms

Ragy Thomas

Well, and to asked raising this you been AI wings thrilled we is adding own seeing we've broader and X awareness. question. you are I'm a our that glad read that for AI Look, know you the if prospectus, years, generative

I the we think, one And that two things as over adding latter kinds the time, is AI back got feature will that going. embed think winner. companies, said of and the and And deeply remarks, to prepared in AI. be a five on go others there'll be their architecture clearly the core I

be will for AI a AI use is not front across companies, the office. fundamental the Having who They differentiator that, people AI. said us,

have maybe you As back, it up, you in a I in can know, wrap And most, suite. the show slide. product we features every hundred just call several I'll

You have, feature, enhanced product is that we using take than any any that AI. center of XX%, that more XX%

not right them. interesting. Awareness do we there us, a and completely for very, additional monetization that obvious see very think I situation for going are Now are AI just base, deflationary and are helps now is is be this opportunities to monetize how that companies

For hours, it's who can us, that charge knowledge-based, fluidly licensing between base regardless licensing thing. self-resolution us, agent the think community-based and I transition cases, companies includes agent cases, like and for a of good enterprise AI and who've

is based AI completely price And exploring insight insights like on on based case-based we our on basis different create. we pricing, value and a And based licensing the models are you product pricing pricing. know

for to net the a for we're massively us. positive as this differentiate the wonders and see this we to use us. doing So, awareness is going In short-term,

older big but C-level are the struggled. it. We talking having have everyone's can conversations a we prove And AI as traditional game, as companies platform, the

at accuracy it? better XX% sentiment showing We're and XX% we're act look to productivity accuracy, should our showing ask method We're the on routing smart random I engaged? is you, you XX% [indiscernible]. XX% agent showing when it with routing, better actionability, in Is

we're we're of AI as showing So, where and cases, better capabilities. proof doing in accuracy concepts twice some

always generically. because the smart example specific of We've had a you give concept everyone's talking responses. I'll

is added use a why we I using script context, the to XXX%. integration the So, that but smart process called in and is up the it, we having do. when don't so out, agent if say Sprinklr is offer has a where system you're [indiscernible], agent as usage, now the That's a that to you guided can good and they're mean had expanded agent that. this, response enter and read full gone rephrase. off And the generative just the AI adoption, getting he the nudging

the that's leap makes the user quantum of way that from back to AI opposed synthesizable visible and as more in So, suddenly accessible kind external an lot a end.

to going help way. it's think really I in So, just differentiate us a big

Elizabeth Porter

initiatives like those Great. two-thirds Can hold has Thank over customers on you. initiatives you new launching count was talk don't historically, the be any change been logo by I I and And driven or that as seen are taking color understand to partners helpful. but success wondering expect would the if time? how could deals. And we report that new you about of a follow-up, number, about the accounts. team you've on new business customer focusing existing to source

Ragy Thomas

is placed sustainable to with there keep likes just a a without and the growth companies I long-term that's and think high-end of having for like as And long-term more logos. enterprise very I us. buy adding think more are for we precedent we're where company, sustained And driver growth seeing more very I Look, growth. very top customers very ServiceNow, think our well

and more time base a this on target focus said as identified we we of go-to-market, customers, last we to adding customer Now, with continue have we've identified want XX,XXX companies.

those not chasing and anybody So, else. companies, trying to we we're we're through only everything reach do,

put it's – We've not those So, are we're count. and things on continues that's And space, of think the all multi-quarter XX a I first things thing. focus logo to almost think we growth I be and teams. dedicated principle And doing. X

results any but to don't promising. report, early we it very have looks So,

Elizabeth Porter

Thank Great. you.

Ragy Thomas

you. Thank

Operator

question of Matt comes next question. Our from the BTIG. with proceed line Please your VanVliet with

Matt VanVliet

What taking success and new all replacing seeing? you are space on contact you're Hi, the Thanks you're center sort or maybe contact center good of overall. around of question. the I that type these, of are any Sprinklr curious evening. often the net most that was engagements for finding Service

Ragy Thomas

Matt, that agent we're of XX that distinct to, have with large we're is, all seeing even problems X,XXX one that patterns. the in contact workforce companies have let's terms agents finding two agents XXX, Well, maybe centers X,XXX it say, optimization, a buy bunch whole ticket we're solution X that, is needs and And then of and together. for a because afford they specifically integrate things. routing can't and or volume unified to X craving finding market

right-to-win seeing for think a of success that us, market. – as in So we and that's segment what we're

Second is deployments. large enterprise the

Now, these drawn going protracted we're encountering to essentially, what's lot. long-term, seeing on about where replacements Avaya And lower-hanging the augmenting have of and vendors whole are we're products. it’s there, concept core larger a we of And infrastructure is, RFPs traditional there thing. working like we like in have just are seven success of going after out, voice a of lot the to we opportunities and AI-based with fruit where that proof Genesys is terms but our

the our center that is industry. service product for So CCAI suite contact suite

lift. or using in your just top on those a you current can deploy it So, is with And capabilities pack they've digital infrastructure. social easier of that Sprinklr, cases, make because traditional for it already much many been as voice a sense? Does

Matt VanVliet

just, Thank long-term. thinking about margins a more quick very Yes. the and on No, follow-up just maybe then services of helpful. that gross that's kind you. And

framing that us margins more at kind you the how out business of or the to a just impact side the help kind funnel, top also development that of push the longer-term, partners as model? of of maybe If for maybe analysis work benefit you of think how look over the is here cost could potential but gross some that can about just ignoring

Manish Sarin

Hi, it's Manish.

question a that's we evaluating services of of whereby we've think the we've develop attractive less ecosystem of business last firms of time comments were delivery earnings capabilities consistent some looking partner call, the, a the And on margin this think them. that to say, to whereby just us, let's could we an could around spending with transition we is with board. because great the I given I on been kind lot take opportunities

So CCaaS is circa higher through this give once are over which lot the we the delivery, that managed XX%, our investments we making be and transition long-term. take, should with a margin are that in we or services, more view, in the

we these sense? margin we that's But depending profile probably be over where right we looking can out that might are make of so any up next feel quarter year achievable. Does Now in. now, comfortable given on what obviously that go that the sort is that, or

Matt VanVliet

Yes, great. the question. taking for that’s Thanks

Operator

of comes from line Michael your with Fargo. Please question next proceed Berg with Wells Our the question.

Michael Berg

I on touch the for wanted question thanks of shape to congrats the Hi, the quarter. on the quarter. taking and

that of curious noted it deals loaded. if into statistics, was larger that out front-end there were QX looking if was there was You fell some the QX, I – upside some demand at to the of just And in the there different the part of quarter. shape you're and environment drove then broadly? secondarily anything meaningfully Thank that's with what you. more QX that, is seeing that

Manish Sarin

question. great a that's Yes,

into QX QX. that deals flopped any weren't from over there So,

then buying purchase and our here believe Now, we, the course, of QX. we that out a of business was loaded. other like product run consistent customer in while, it the but into can't how company do and enterprise do fairly any every have suites that of model of we've a And a a back-end we guide is lot the case behavior. Street been variety in once situation customers to, new a reasons, desire software predict in one for where, And our to we

out in fairly we transparent in to remarks, I million. happens And prepared pointed were $X benefit in and which, consistent as out that QX, with here accrued was approximately the that our additional prior when us the commentary, pointing

sort what you that as more both a see sort results look would revenue the into if guide factor QX well like, you normalized, as of of So, pattern.

Michael Berg

that time? Helpful. then back in going can Like terms piece, we how And goal of a target mix the do Services up there? over to long-term shaping you the have see

Manish Sarin

And revenue? to with that, in referring a particular, as you're of percentage overall

Michael Berg

Correct.

Manish Sarin

mix Services? the within Or

Michael Berg

Services mix as a overall. of

Manish Sarin

Yes.

we to make of easier for couple value we customers us almost revenues. partly in driven more implement, that management more sort trying by a you a were if And much fashion. all overall years, go of down bring the because expedited was back providing much to feel, to wanted suites XX% did a as Services the team, we to So, of

[ph], where level. think a we I are is so, just percent] probably is And respectable now right it it, under, [X-odd call

over somewhere be spot to XX% So, as look X% I for out seems longer term, right between the us. and the

to [ph] migrate Services I obviously will, chain, you profile value just your said within And more the will delivery, a service sort obviously CCaaS versus in better might that mix The [plain towards margin lead services managed implementation. longer-term, as the or more vanilla] up of if earlier. higher

to a at we we're expect will, where should with transparent on level state be in demand. economic steady is model And calls. trying we change, Street think that a our admit I the more industry. earnings best I however, are we're customers' would you level. adjust things our toward what So, probably the should fast-evolving And future

Michael Berg

Thank you. Helpful.

Operator

Please question proceed of your with question. comes line with next the Our Walravens Patrick from JMP.

Patrick Walravens

the to Great. Thank I three contact have Ragy, next progress do evolve partnership particular, you how maybe a like of making a it your you. in is the in with and you know space, Amazon environment expect over And seems center lot them. competitive years?

if be could that would too, it that on So, element of you touch great?

Ragy Thomas

Absolutely.

Patrick, started we right. social space as know, in out you the So

to world companies were competing a engineering, mainstreamed will. if have one our and lot evolved been but solution of you of we're digital we with space from or Our endpoint we is, invoice with. who to using companies We where we bigger that with legacy little every competing mainstreaming have have evolved companies, together the bought that still this and some selling we these suite. product Where of are

for very understand. that's important to market the So,

suite, four product the done Social doing the got product and right? to started those frankly suites. Marketing is, The each our service and product product with So, have category. we've service. suite, mainstream suite, We And are a space, Insights with, And one Service space. product easiest understand we're what with Social evolving of to the way the

have digital. we Now,

space. Now, CCaaS the we're in

the space. of Zendesk enterprise and the that obviously likes now the companies of other and Avayas are who with competing we're So, Genesis in and a lot

as a is single-digit including What's tech And market, That's TAM. small contact you center know, is The and tech you and the percentage. billion, $XXX a only about labor. know, as very large that's and is at actually into cost is $XXX expand – exciting the good labor a billion the will chunk now [beat] mitigation the tech AI the market super into opportunity. [ph] play of because

doing So, know sale. have We AI-based. we we know we a a know major we're We that's are a know We better replacement product. market.

easier. become it's So,

going in in capabilities, of the That's as That's be to I thing thing a group do remarks. marketing. prepared voice we're involved outlined very the a in customer the same So, same adding we're companies. is more the doing set where competitive to to different Insights, we're going of

have a We customer in survey-based platform. where as their is doing addition deals customer the the of increasingly us to voice – platform we're using

that some and So, we at point, incredibly competitive are should it add surveys, we there. be obvious

and a our that's evolve. So, set strategy will competitive

know our many, mentioned third goal the become You to the the I've in many very enterprise. times clear, fourth that is or platform

go as suite. Salesforce, such buy CRM You

other unifies stack those somewhere and other and that should can and point ton [stated XX connects to the of and analytics, replaces buy a connects that's go and website – Adobe, of [ph]. your lot your Microsoft and is platform a then the have and X be of between that stack] it You it solution takes Sprinklr you And three. a care

cloud me about and switch gears providers. how Let now talk we see the

going The the way interesting market are moving. it's keep is infrastructure to Now, stack. coming the up the very providers

you'll that. the of so, with service and market past providers see the all the players, And communication

I a all – player, coming the stack. play. That's to – bleed very are they We're other. each think system into operating it's app code. from all top that's We're application of play going pure the software. It's

no aspirations with. have data We

agnostic And a architecture. channels and we communicate across to and and business channels, all it's units. based, license all provide way It's across unified part of we're the

they think to now, other. I great complement So, it's eventually but each right connect, will a

see as Google, partners deals we Amazon, quarter. we to and great Microsoft, to So, together great partners several every ourselves partners actually to great do

a the But invoice architecture. long if bleed to in the what I into Because I truly Now obviously, pretty front bet office, each little a you're pull over other think platform see were bleed is run. into everybody would engineering do you, is I going off tough other. to possibly. they And on, each bit,

Patrick Walravens

That’s super helpful. Thank you.

Ragy Thomas

Great you. questions. Thank

Operator

Instructions] Tyler Our line question. [Operator question Please with Citi. from next proceed Radke your with of comes the

Tyler Radke

Good how some up. Yeah, ask I of evening. you're thank seeing wanted the you about just large to you. shape renewals

some about renewals you think in talked expected here I QX. large

the heard pressure. remind you are space you trend? your your seats renewal Thank undeployed. if seat players based? revenue on How shelf just gone other have of And usage the to have versus We've composition ware of Some anecdotes larger front-office or about talked you. some could rates interactions of that's and renewal us that expecting base

Ragy Thomas

Okay.

two So, there are questions there.

they've analytics. put point up set they've buy it, we of bought what we go They've Well, first in and call The growing. solution to the up it because AI our before is, the seeing now keep one or into open governance. an approach, got you now tell deals us do the I'll story guys first RFP are who terms Sprinklr do customers models, hey, say, out a in the larger we they true attuned into have you, you renewal? once – And the

a company happened approved. breach their tech very as X give probably a top expanded an in And and not was spend with services the I'll of very, that resulted governed issue that marketing there you top us. idea large agency example and X, was that that ad was an

Sprinklr, spending global So, they be so have visibility calendar. they got can governance on and they and just a paused compliant, they right? till have editorial so And everybody can can that

million] count And know over So, you, going customers one million] you you [XX that customer up if paying are confirm I that's of [XX us had and that as paid we the [ph]. number to can well. [ph], over

top love details we our the the but are fourth of love It's so, love And as our third share very it. we we'll cementing that just position what Day, market we platform. on Investor that. both at the seeing or more We

to many know other you to value been companies try obsessed we've about people also in that build company and unlike love. our aspiration are Now, a delivery going

super, is by is a us. case. business up So, for backed delivery important value Everything super

vendors, seeing. We're it well us. for And telling thankfully. you're that are compression shelfware customers are seeing – the seeing compression from not seeing not as shelfware they from, our us that's we're fortunately, so, other And

Tyler Radke

or versus Thanks. mix the usage? able about then That's revenue to And helpful. are talk you interactions of

Ragy Thomas

Yes.

have we at the don't moment. really any usage-based pricing So,

So, high license. seat you or you based, have we'll like, buying AI based how whether have product a tier for buy flat that know example, or based usage. you think of that are like is on have what Insights sensory it So, enterprise SKUs right? of some as products don't buy qualifies you tier you're data – I as much consuming, our We

you like So, of just you you money a get if tier, use different push not all but into it's back, that, go. you you, get don't if

So, I to think a a it's they're mix. And license always. committing pretty good

process. all Insights is Our ingest product AI they and based on and that of quantity data

enterprise as license have Our again, open like and and center products the models. to well knowledge-based you the there at flat and other things we very fee contact CCaaS and pricing have that's and models based, other is then we're community products seat-based license

healthy couldn't how a So, exactly split. you tell I it's mix. is that

Tyler Radke

Okay. That's helpful color.

the wanted wins. saw So, contact It large you sounded just ones to like quarter. center some then follow-up in again the on I

services. I hear these are you you some kind financial larger complementing correctly displacing them In deals, about and are not – in airlines initially? of you that words, of talked other those Did You one Thank longer-term just kind you're those potential to of road seats, – curious your optionality the of terms kind on in or two map of role? examples, them with incumbents complementing or displace you. large the you're was

Ragy Thomas

both, Tyler. Both,

be with several drag longer-term these in bookings, to on have the a we that all people digital. they we to along. see of right, short-term early and very used have And is, digital, start quickly. productivity, I plays. care of also that time we're So, because will of very large gets first, significant power confirm solution with committed conversations, AI and social better are typical wall-to-wall proof being concepts the respond, pilots, right? of plus route that It agent – kind that's there's can now plays it, invested we're be to moving social, where plus And which digital larger to And our resources social

is player. publicly we is aspiration CCaaS and serious stated hope to Our become a pretty

of that requires kind so on. us to, overinvest And early

a take remarkable able the But show quarters. labor business to results, So, that we're fruits will of Tyler. few probably

or – us quarter X that's it put next not think quarter, the know and about years. allows the strategy, to about our but think head to So, next this and right X that we years that's down

Operator

comes with from question Michael line question. proceed with next of your Our the Turits KeyBanc. Please

Michael Vidovic

Michael taking is Turits on thanks for Vidovic Hi. for and Michael This my question.

this about You you point are seeing self-service offerings, really [ph] [XX you call market, but longer-term? count] the talked that you're at is move seeing there with Or the early help any customer just traction about these products indication the Thanks. will earlier? down help it, talked you land you

Ragy Thomas

of more the Michael, latter.

down We market. are go not looking to

be me very, Let very clear.

So, if XX,XXX coming our in you are anybody to target website, a list of who's contacting not not companies. we're actually

[that us, wake in we'll year] but high people that go not be that today. right? and some [ph], day up very ranked find not day, is And it's So,

terms to that and self-serve segment. very of our intentional we're target driving products, audience only is our the in in So,

in volume is them we the play. So, our is say a upside And at the can very term stay least to market medium focused. game a it's in lot of us. intention, There not for to I

So, at not market all. it's down going

Michael Vidovic

And that between any out? then Got we're trends here, Thanks. QX it. call just changes that Thanks. or now you'd now past and May

Ragy Thomas

you or month Now, and – so? mean just the in last

Michael Vidovic

Right.

Ragy Thomas

they're attention years. sure, that us a [Technical and declared and be paying based. I had the people Sprinklr I next partner, noise it thinking of they're in paying companies that paying AI, helping the thinking – what seeing And clients to are the is the just as us to will said customer you value as love are I'm is Look, differentiate generative of broadly I more awareness think I performance very winners Look, of think as us to talking who of over than Adobe and speaking about to metrics. us I subside thinking I us surprising. more everyone's the that super well, and few is it's think was AI going companies strategic the exciting Difficulty] system was a terms

industries. all in companies all saying not I'm

in C-suite. value rip CMO we're point to at to time. Because we platform, And holding can consolidate you CIOs companies conversation a something excited that solutions increasingly, a ever we're talking talk can being a CIO that C-suite to did want and to before. also I that's and a and to the versus think very solution and strategic partner the demonstrating XX who a those about I want a of up to So, people out and the less X, XX, tell than getting is having I'm that difficulty game lot and personally point

Operator

line with comes proceed question. Bhatia question Our Arjun next your of the William Please with from Blair.

Arjun Bhatia

me Hi, understand or Ragy, just some the the the versus some you for do it's deal? follow a strategy product service of delineating, in contact that, this more your market for to just on up existing of is Sprinklr there, see taking whether how on you, the guys. Can time. you're that opportunity. platform? sitting, on what's for service get holdouts center team where center the question. you focusing deal team Thanks to then this a just Is because help it's that maybe the – growth or does it had And contact marketing kind customers to, you've way on focus

Ragy Thomas

department, our in we're okay? contact So, service the that assigned seat a to everything customer is bucket somebody it's is, to real news service always customer almost good center, the in the service. but Arjun, referring So in that's it's

with user you're bucket that or goes bucket. marketing marketing customer, the If revenue social you are under probably – the engaging a a

a is is interesting which customer we're So, talking service, service seat. for everything very about us. It's

is out I thing want to seat second The customer a seat. point customer service us, is, service for a

activate channels So, and five call choose may social. to you it

to You contact may digital bank we and of implemented before. you the we about or for voice entire activate may a one And that center with largest us. XX,XXX go I'll It's of just real you the the same activate all contact choose only center. at do story XX and talked seat give the

e-mail Sprinklr, In capability. bunch service the the a customer of contact were people center, there before with

e-mail my increase because hey, credit they want could to card that's limit, you back literally do. They would they agents. you were e-mail if I them, e-mail all So,

e-mail an send would you Friday so an Monday. when Sunday go close come send and to work back you to e-mail That case get And you respond. night, wouldn't till

the summit it and With and because the is analyst call case and say, – was your just that submit amazing, went this proof of hey, said Sprinklr, gets income minutes. now And into this can resolution the to talks request, that from you guy agent to came blah. hits the story, e-mail hours they blah, blah, button, weeks and days

the So, exact same you what omnichannel. and we by are just things is off just mean you on capability, turn true buying which – and

Arjun Bhatia

sense. then Manish. for All right. makes That one And Understood.

square just You baking Maybe trying rate did talked on two. customers? downward in of Is there you I'm to net next you few the renewal subscription up – anticipating are assumptions some about guidance? that – some retention some raise pressure because walk through from just coming headwinds the that just maybe the revenue some in us the here. quarters you're

Manish Sarin

Yes.

So, raised and the revenue the we the by subscription the QX. for guide full-year QX of full raise for beat

And So, any in sort are that I the expecting set the environment. is, a of I start live issue investors didn't just year. feeling want macro to don't stone XXX% think rest the look, expected we of – the we in fairly uncertain But for churn? was

the I've be to square XX% subscription with the full-year. cautious prepared will remarks And trying there. in just growth rate the for that the provided So, commentary

over quarters, So, new is renewals, of as give to out we together I was business, we look period the on. think are commentary expecting captured this three what I terms this is us that of what next in in all of trying

Arjun Bhatia

That’s helpful. perfect. guys Okay, and great Thanks quarter.

Operator

to questions further remarks. are There hand I'd for management queue. back closing like no the to the in call

Ragy Thomas

our today. We Well, much, business. to most updating us most soon as a of customers for a and joining aspiring thank and and operator, you and on for loved to evening. all have the trust exciting I'd creating thank again look enterprise and create you, continued to our company. you first continue thank like world's Thank great we very their forward importantly, employees all you our partners software new journey this and category

Manish Sarin

you. Thank

Operator

gentlemen, does you conclude today's participation. teleconference. your Ladies and Thank for this

your disconnect You this and day. wonderful time, at lines have a may

Sprinklr (CXM) 5 Jun 232024 Q1 Earnings call transcript